Abstract
The manufacturing industry is undergoing a profound transformation driven by the twin transition, described as an intertwined shift towards digitalization and sustainability. As such, this study explores the socio-technical competencies necessary for organizations to successfully navigate this transition. Adopting a mixed-method design science research approach, we first use a rapid literature review and thematic analysis to construct a competence development framework for the twin transition encompassing five key dimensions: digitalization, sustainability, social, leadership and product & process technical skills. These insights then inform a multiple case study involving the collection of semi-structured interview data across two manufacturing companies, assessing managerial perceptions of their current competence levels. Findings indicate that while managers generally demonstrate strong social-, leadership- and product & process technical skills, significant gaps remain in digitalization and sustainability competencies. Notably, sustainability knowledge is inconsistently understood across hierarchical levels, and digitalization competencies vary widely among managers. These results underscore the need for structured competence development initiatives to equip organizations for the twin transition. The study contributes both theoretically and practically by offering a systematic framework for competence mapping, enabling firms to identify skill gaps and implement targeted workforce development strategies. Strengthening these competencies will be essential for companies striving to remain competitive and sustainable in the evolving industrial landscape.